Welcome Guest. Sign in
Asked by: Maria
advantage, and, audit, committee, disadvantage, of Accounting, Business
Advantages and disadvantages of having an audit committee.
MouMou on Mar 25, 2012
Log in to Reply
1. It provides an internal reporting mechanism compared to reporting to the directors who may wish to hide or amend unfavorable internal audit.
2. Shareholder and public confidence in published fiancial information is enhanced because it has been reviewed by an independent committee.
3. Provides better communication between the directors, the external auditors and management.
1. Fear that the purpose is to catch the management out.
2. Non-executive directors being overburdened with details.
3. Additional cost in terms of time involved.
+17 Votes 23 Votes 6 Votes
© 2011-2015 StudentYard.net. University Textbooks Homework Solutions. All right reserved.
Get Answers to subjects like Engineering, Computer Science, Maths, Physics, Bilology, Accounting, Chemistry e.t.c.